Become Real Estate Millionaire
REAL ESTATE
Emran Chowdhury
Can you become a real estate millionaire in just 10 years?
It does not matter wherever you are in your financial freedom journey. If you are an adult and reasonable income here in the USA, you should be able to follow the process. Btw, it took me less than 7 years and I was lucky. But I did not know all the basics, I needed to figure those out along the way. I am giving you the free formula, don't tell anyone!
Check your credit score, if it is less than 600 - the first step is to increase it to 720 which might take a year/two.
You will need some down payment, so try to save at least $20K-$25K. But $10K will work too if that's the only money you have.
Try to find a house around the $150K price point. If your income is more, you can look for $200K-$250K. If it's more than the $300K purchase price, you won't become a real estate millionaire in the next 10 years unless you are super lucky.
You can buy your primary residence with a 5% down payment if you are qualified for an FHA/VA loan - you might need as low as 3.5%. Check with your lender to get pre-approval.
Always do the mathematical calculation I mentioned earlier. If you don't live in this house, will you make money after all the expenses? If not, it's not a good investment.
Whenever I buy any property, I always consider whether can I rent out a room/two while living in the property. This drastically reduces your monthly mortgage payment.
The only requirement of your primary residence mortgage is - you will need to live in the property for a year.
This will become a little tricky now, after a year/two - you will buy another property as a primary residence and rent out the old house. So your rental income must cover your monthly expenses for your old house.
You will keep doing it until you become a real estate millionaire which is the total market value of your rental properties - the total mortgage liabilities balance.
You might say that's a lot of work to become wealthy. Who said becoming a millionaire in less than 10 years is easy (I said it's simple and anyone can do it). But more than 93% of the US population are not millionaires. So I would rather prefer to be in the top 7% than working till 67 years old.